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You are at:Home » Major projects body declares HS2 ‘unaffordable’
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Major projects body declares HS2 ‘unaffordable’

Machinery AsiaBy Machinery AsiaJuly 24, 2023No Comments3 Mins Read
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Whitehall’s main projects body has given the HS2 program an ‘unachievable’ rating.

The Infrastructure and Projects Authority (IPA) gave a red rating to both the first phase of the high-speed rail program and its phase 2a in a new annual report published on 20 July.

The IPA definition of a red rating reads: “Successful execution of the project does not appear to be possible. There are significant problems with project definition, schedule, budget, quality and/or delivery of benefits, which at this stage do not appear manageable or solvable.

“The project may need a new scope and/or its overall viability reassessed.”

HS2 was previously given a red rating in the 2019/20 IPA annual report, when its phases were not individually assessed. This rating came after the government directed major changes following the Oakervee review into whether HS2 should go ahead.

The latest red ratings come after a turbulent few months for HS2, which has seen major reviews brought forward again to the project. In March, the Department for Transport (DfT) announced that Phase 2a and construction of its £4.8 billion Euston terminal would be delayed due to rising costs.

Last month, the department said it would look to review Euston’s design and potentially work with new private sector partners to deliver it.

The House of Commons Public Accounts Committee later said the DfT “must be much clearer to Parliament and the public that the revised budget it sets is realistic and that the station design it approves is affordable and deliverable” before building work restarts.

HS2 Ltd chief executive Mark Thurston announced his resignation from the project on 13 July, with chairman Sir Jon Thompson taking over as interim chief executive.

The IPA did not go into detail on most of the projects in its report, and made no mention of HS2 beyond the assessment ratings. A spokesman said the organization would not comment further on any specifics.

An HS2 spokesman said: “HS2 is now reaching peak construction, with work intensifying and major civil engineering structures taking shape along the first phase of the route. Our priority is to maintain the fantastic momentum already underway to ensure the initial high-speed services, connecting Old Oak Common and Birmingham Curzon Street, are operational for the current target of the early 2030s.”

Introducing the corporate plan for HS2 2023-2026, published this week, Thompson said: “There has never been a better time to be involved in the HS2 project.

“Iconic structures and world-class civil engineering schemes are now part of our everyday lives and I’m proud of the way we’re building as well as what we’re building.”

The DfT was also approached for comment.

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